Submitted

The New York Power Authority trustees
Tuesday approved more than $3.5 million in funding
awards to 10 Western New York enterprises working in wide-ranging business sectors
that include job training and workforce development, tourism, advanced
manufacturing, biotechnology and food processing.

The NYPA board action follows
recommendations of awards by the Western New York Power Proceeds Allocation
Board last month to the following enterprises: Ford Motor Co., Visit Buffalo
Niagara, Niagara University, Forest Lawn Heritage Foundation, CNC Technical
Solutions, Washington Mills and Lineagen. In addition to approving awards to
the seven entities, the NYPA trustees approved three awards recommended by the
WNYPPAB last September to OSC Manufacturing & Equipment Services, Niagara
Label Co. and Yancey's Fancy.

"The Western New York Power Proceeds
Allocation Act is further evidence that Gov. Andrew Cuomo's innovative approach
to economic development is working," said John R. Koelmel, NYPA chairman. "The
proceeds funds from unutilized hydropower from NYPA's Niagara power plant are
another key element of the administration's efforts to grow and diversify the
region's economy, which is demonstrated by the latest awards."

"The initiatives being supported by
the latest round of proceeds awards represent crucial segments of the Western
New York economy," said Gil C. Quiniones, NYPA president and CEO. "Gov. Cuomo
understands that the state's partnerships with key enterprises must be aligned
with the priorities of the Western New York Regional Economic Development
Council. The latest funding awards by NYPA reflect enterprises that are part of
a diversified, vibrant economy for the region."

Advanced
Manufacturing

The largest award approved by the
NYPA Trustees was $1 million to Ford Motor Co. for an expansion of its
63-year-old Hamburg stamping facility, located just outside of Buffalo. Ford
has plans to invest $150 million to upgrade equipment and add 10 new assembly
lines. The expansion will lead to the creation of 350 new positions at its
facility above its current employment of 640, with startup of the new equipment
and assembly lines by the end of 2014.

In addition to the proceeds award,
NYPA and Empire State Development contributed to a package that includes
low-cost hydropower and $7 million in capital grants and tax credits to help
ensure Ford continues its competitive operation in Western New York.

The NYPA trustees also approved
funding to three additional manufacturers to develop advanced manufacturing
processes and assist in expansion plans. Washington Mills, located in Niagara
Falls, was awarded up to $140,000 to upgrade an existing high-temperature arc
furnace with new, state-of-the-art electrode controls. In addition,
improvements will be made to the company's material handling system to improve
efficiency and productivity. The company will retain 105 jobs and create two
new positions.

OSC Manufacturing & Equipment
Services was approved for up to $750,000 in funding for its expansion into
downtown Buffalo. The $17.5 million project will include the build-out of
manufacturing space to produce mini-excavators and other equipment, along with
heavy equipment rental and service, metal manufacturing and attachment
fabrication. The project will retain 20 employees and create 26 jobs.

Niagara Label Company, a
family-owned business and an industry leader in label printing, will receive
$150,000 in funding to complete the second phase of a two-phase, $1.56 million
expansion that will increase production and create 17 new jobs in the Village
of Akron.

Tourism

Visit Buffalo Niagara was approved
for $250,000 to develop strategies designed to attract more visitors from both
sides of the U.S.-Canadian border.

A $250,000 funding award to Niagara
University will establish the Niagara Global Tourism Institute, which will have
the primary goal of making Western New York more competitive in the tourism
industry.

The Forest Lawn Heritage Foundation
received $150,000 for design and development of an open, accessible and
conveniently located center where professional tour operators and visitors can
obtain information on local and regional attractions.

Business
Development

The NYPA Trustees approved funding
of $75,000 to CNC Technical Solutions for an expansion project in Medina that
will allow the firm to increase the capacity and scope of its industrial
control systems reclamation business. The project includes infrastructure
investment such as the renovation of a formerly abandoned church and warehouse
facility that will be repurposed as a new manufacturing facility. The project
will retain two jobs and create an additional three jobs. CNC has been a core
business in the Medina community for more than 10 years.

Biotechnology

The NYPA trustees approved an award
of $250,000 to Buffalo-based Lineagen, a company that operates a genetic
testing service for individuals with autism spectrum disorders and other forms
of developmental delay. The company is undertaking a $5 million project to enhance
sales and grow its technical staff. The project will create eight jobs.

Food
Processing Technology

The NYPA trustees approved an award
of $500,000 to Yancey's Fancy. As part of Yancey's Fancy's $20 million project,
the NYPA funding will allow the fast-growing New York manufacturer of specialty
and artisan cheeses to invest substantially in expanded facilities and capacity
at its plant in Pembroke. The project will add 112,000-square-feet of
production space for distribution, offices and employee facilities to the
existing 29,000-square-foot plant. Yancey's Fancy will retain 65 jobs and
create 50 new jobs.

The 10 enterprises approved for
funding are consistent with the statutory provisions of the Western New York
Power Proceeds Act, requiring that eligible projects be located within a
30-mile radius of NYPA's Niagara Hydroelectric Power Plant in Lewiston.
Proposed initiatives must also support the growth of business and lead to the
creation or protection of jobs. Consideration is also given to the consistency
of the initiatives with the Western New York Regional Economic Development
Council's strategies and priorities.

NYPA contracts with the grant
recipients will include provisions for periodic audits to ensure the funds are
used for the stated economic development purposes.

One-third of the power from the
Niagara plant is provided under state law to businesses within 30-miles in
support of hundreds of thousands of jobs in the region. The proceeds awards
stem from Cuomo's signing of the Western New York Power Proceeds Act last year,
which authorized NYPA to set aside the net earnings from the sale of unutilized
hydropower - from the power dedicated to businesses - into the Western New York
Economic Development Fund.

The fund has accrued approximately
$26 million to date. More than $12 million in proceeds awards have been
approved for awards by the NYPA trustees stemming from recommendations by the
WNYPPAB. Tuesday's approvals by the NYPA trustees mark the fourth round of
funding awards.

Statements
by Others

"These grants help give the region
the tools to improve self-sufficiency through efforts that support job creation
and economic growth," said Congressman Brian Higgins.

"The Power Proceeds legislation that
I championed in the Senate, provides companies in WNY the ability to expand and
retain jobs all while growing the regional economy," said State Sen. George D.
Maziarz, chairman of the Senate Energy and Telecommunications Committee. "The
businesses selected in the 62nd District - Niagara University, Washington Mills
Electro Minerals and CNC Technical Solutions - have shown dedication to staying
in the community and continuing to employ Western New Yorkers. I want to thank
the New York Power Authority, Gov. Cuomo and the Western New York Power
Proceeds Allocation Board for continuing to put into motion the purpose of the
legislation."

Senator Tim Kennedy said, "This
critical investment into the Western New York economy will help speed the pace
of development and spur continued progress in Buffalo and throughout the region.
By targeting our tourism, biotechnology and advanced manufacturing industries,
this funding will capitalize on our region's strengths to help power economic
growth and fuel job creation efforts that will ensure Western New Yorkers have
the opportunity to secure good-paying jobs. Congratulations to Visit Buffalo
Niagara, Lineagen Inc. and OSC Manufacturing & Equipment Services, three
thriving enterprises in the 63rd Senate District that will receive NYPA funding
to continue their important work."

Assemblyman Sean Ryan said, "The WNY
Power Proceeds program has proven to be an important economic development tool
for Western New York. Thanks to power proceeds funding, the Ford Stamping Plant
in Hamburg will continue to move forward with its planned expansion and added
employment. I am pleased to see that our state continues to support advanced
manufacturing in Western New York."